Key Points:
- The Nevada FID has filed a petition to put Prime Trust under receivership due to financial difficulties.
- The company owes its customers $85,670,000 in fiat cash but only has $2,904,000, and owes $69,509,000 in digital money but only possesses $68,648,000, according to research.
- The appointment of a receiver will safeguard Prime Trust’s consumers and assets, who will take over the administration, stabilize operations and determine the best course of action.
The Nevada FID (Industry’s Financial Institutions Division) has filed a petition to put Prime Trust under receivership, which means that a court-appointed receiver takes control of the company’s assets and activities to safeguard creditors and other stakeholders’ interests.
The petition will be heard, and the trustee submitting the petition is required under NRS 155.010 to notify all people entitled to notice. The hearing will evaluate whether Prime Trust should be put under receivership and who should be chosen as the receiver.
In 2021, the Nevada FID Prime Trust lost access to old wallets and spent client money to purchase back cryptocurrency. Prime Trust owes clients $85,670,000 in fiat cash but only has $2,904,000, according to the research. In terms of digital money, the corporation owes its customers $69,509,000 but only possesses $68,648,000.
When the Nevada FID files a petition to put Prime Trust into receivership, they are requesting that a court appoint a receiver to take control of the company. This often occurs when a financial institution is in considerable problems, such as when they are unable to satisfy their financial commitments or are in breach of certain laws or regulations.
In this situation, it seems that Prime Trust, a crypto custodian, has been experiencing some difficulties. According to some sources, they have been unable to fulfill consumer withdrawals, resulting in a “shortfall of customer funds.” The Nevada FID has even given them a cease-and-desist order.
The Nevada FID is attempting to safeguard the company’s consumers and assets by putting the company under receivership. The receiver would take over Prime Trust’s administration, attempt to stabilize its operations and determine the best course of action.
Prime Trust is a company that offers services to cryptocurrency initiatives. They have worked with approximately 700 customers in the financial and cryptocurrency industries. They were recently thought to be insolvent after receiving more than $100 million in cash in June of last year. Due to the effect of strong cooperation with the crypto custody company, the payment platform Stably temporarily paused several activities.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Harold
Coincu News
Source: https://coincu.com/198262-prime-trust-faces-receivership/